The banking sector could be investors’ focus amid the market’s expectation of an interest rate hike in the upcoming MPC meeting while sentiment is likely to remain negative, Malacca Securities said in a note.
Meanwhile, it said that the technology sector may succumb to another round of sell-down amid an interest rate up-cycle environment.
The stockbroking house said that given the lackluster trading and the increase in continuation of net foreign selling, we opine that the local bourse may see selling pressure interspersed with bargain hunting activities in undervalued stocks. Commodities-wise, the CPO traded above RM4,350, plummeting after Indonesia’s announcement of an increase in export quotas, while the crude oil price closed around USD113.
On the local bourse, it said that FBM KLCI (-0.8%) started off the week on a dour note, dragged down by weakness in Petronas-related and telco heavyweights yesterday.
It sad that the lower liners were also downbeat, while all 13 major sectors on the broader market were painted in red with the technology sector (-2.2%) underperformed.
On the global markets, the US stock markets were closed for the Independence Day public holiday. The European stock markets ended mostly higher on dip buying, while Asia stock markets closed mixed as concern over the slowing economic growth and high inflation persists.